Because these things are sent to try us...
Your mortgage is likely to be one of, if not the biggest expenditure of your household, and it’s important to keep up with all your repayments or you risk losing your home. However, the last 12 months have been living proof that none of us know what’s around the corner. Life can change direction at the drop of a hat and our jobs and livelihoods aren’t guaranteed, making us financially vulnerable. Having a mortgage protection insurance policy in place means that help is always at hand, should you need it.
What is Mortgage Protection Insurance?
Mortgage Protection Insurance will cover the cost of your mortgage repayments if you are unable to work due to illness, following an accident or unemployment. These payments are typically made for a set amount of time, or until you are able to return to work - whichever happens first. You are eligible for Mortgage Protection Insurance if you are employed, self-employed or a contract worker - although each contract varies.
Mortgage Protection Insurance is often coupled with a life insurance policy, which could be used to pay off your mortgage if you were to die leaving a partner or children behind.
How much does a Mortgage Protection Policy cost?
Your mortgage payment protection insurance premiums will depend on a number of factors, including your salary, the size of your mortgage repayments, the type of policy you take out, and how soon you want to be covered.
There are a number of different mortgage protection insurance products available on the market, each designed for people in different circumstances. For example, someone in their thirties with no mortgage or children, won’t have the same needs as someone in their forties with a home, a family and a larger income. Monthly payments, known as premiums, vary greatly but can start at just a few pounds a month for basic policies.
How would you cope if your property wasn’t protected?
It helps to weigh up the costs of a mortgage protection policy against the risks of being uninsured. For example, how much would you lose if you became ill and found yourself unable to work? How would you cover your monthly mortgage payments?
Take action today and work out your options
The key to deciding what mortgage protection insurance you need, is by weighing up the risks and benefits of protection insurance against the cost and coverage. It’s entirely up to you to decide what’s important to you and how you will protect it. This could be providing for your children, covering your mortgage payments, or your earnings. Due to the pandemic, some insurers have added new exemptions to their policies, so this is something to be mindful of when choosing the right policy for you. If you decide that you need mortgage protection insurance advice, then make sure you consult a mortgage protection insurance broker, such as Skyline Mortgage Consultants.
Talk to Tony
If you haven’t yet taken out a mortgage protection policy and need some impartial advice, book an online appointment with Tony.